Oppenheimer Keeps a Hold Rating on TripAdvisor Inc

By Carrie Williams

Oppenheimer analyst Jed Kelly maintained a Hold rating on TripAdvisor Inc (NASDAQ: TRIP) today. The company’s shares closed on Friday at $57.93, close to its 52-week high of $62.36.

Kelly wrote:

“TRIP shares are up 56% in last 90 days, versus the internet index at +8%, and we believe investors are expecting further upside to sell-side profitability estimates ahead of this week’s 2Q print. EXPE’s results indicated an increasingly moderating marketing environment across Online Travel, supporting TRIP’s hotel segment profitability trajectory, in our view. Therefore, we increase total ’19E EBITDA by 15%, and are now 10% above Street. We believe improving mobile shopping trends are alleviating some desktop bidding headwinds, and see mobile CBT revenue carrying a higher long- term contribution margin versus desktop (Ex:1). Management is effectively managing the company to profitability; however we maintain a Perform rating based on SOTP analysis (Ex:4) implying value range of $53-$72, indicating a balanced risk/reward, in our view.”

According to TipRanks.com, Kelly is a 4-star analyst with an average return of 8.2% and a 57.3% success rate. Kelly covers the Services sector, focusing on stocks such as Booking Holdings Inc, Yatra Online Inc, and Ctripcom.

Currently, the analyst consensus on TripAdvisor Inc is a Hold with an average price target of $47.93.

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The company has a one-year high of $62.36 and a one-year low of $29.50. Currently, TripAdvisor Inc has an average volume of 2.66M.

Based on the recent corporate insider activity of 44 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of TRIP in relation to earlier this year.

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TripAdvisor, Inc. is an online travel company, which owns and operates a portfolio of online travel brands. It operates its business through the Hotel and Non-Hotel segments.